Xiaomi’s Mi Credit promises to give you a loan by the time you order and finish a cup of coffee

• Xiaomi today launched Mi Credit – a personal loan offering in India.
• Mi Credit will offer personal loans upto ₹1 lakh.
• Xiaomi launched its payment wallet – Mi Pay was launched in March 2018 which now has 21.6 million users.

Xiaomi is following the same path in India as it did in China. After a successful foray into the credit business in China, Xiaomi today launched Mi Credit in India.

Xiaomi’s Mi Credit feature will disburse loans in five minutes or as Manu Kumar Jain, managing director, Xiaomi India puts it, “By the time you order a coffee and finish it, you’ll have your loan approved..

Mi Credit will offer personal loans upto ₹1 lakh, after one registers on the platform with relevant details. A user can also check their credit score through the app without having to ask for a loan.

So what led the smartphone maker to jump onto the credit industry in India? It sees a potential in the 1.9 crore personal loan consumers in the country, said Jain during the launch.

According to a BCG report, India’s online credit lending industry will be worth $1 trillion by 2023.

But Xiaomi is not new to financial services. In China, the smartphone maker has already disbursed ₹1 lakh crore in loans since its launch in 2015 and for all of its financial services – payment, credit, wealth and insurance, it has a user base of 45 million.

In India, Xiaomi launched its payment wallet – Mi Pay was launched in March 2018 and today has 21.6 million users.

Xiaomi is one of the biggest smartphone makers in India with a 27% market share. Xiaomi gained popularity in India for its affordable smartphones. With 12.6 million shipments in the third quarter of 2019, it is also the number one vendor in India's smartphone market, according to International Data Corporation.

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